YouLend, an embedded financing platform, announces that it has secured a financing facility with funds managed by Castlelake, a global alternative investment firm that focuses on asset-based private credit
The facility reportedly broadens YouLend’s investor base in the US and increases its available capital, which has the potential to extend over $1 billion in revenue-based financings to US SMBs over a three-year period.
The update follows YouLend’s announcement of various key partnerships with platforms such as Etsy, FreshBooks and Paysafe in the United States.
The financing facility builds on a relationship between YouLend and Castlelake across geographies in Europe.
In 2023, funds managed by Castlelake provided “subordinated debt” to support YouLend United Kingdom’s “private securitization transaction.”
This agreement between funds managed by Castlelake and YouLend will enable YouLend to grow US originations by delivering fast, affordable solutions “to even more small and medium sized businesses.”
In recent years, YouLend has experienced steady growth in the US by forging key partnerships to deliver financing options for small businesses.
With a 90% approval rate and “quick time-to-market” for partners, YouLend has supported SMBs across the country.
The deal follows a lending milestone as YouLend marked 200,000 instances of funding to SMBs globally.
Partners have estimated that YouLend-backed SMBs experience “a 26% uplift in sales in the 6 months following funding, with these sales contributing more than $10 billion to GDP across YouLend’s core markets to date.”
As covered, YouLend is a global embedded financing platform for many of the world’s largest e-commerce and payments platforms, “such as Amazon, eBay, Etsy, Shopify, and Paysafe.”
Their software platform and APIs enable partners to extend their value proposition by offering financing products in their desired branding to their merchant base without “any code or capital required.”
With YouLend‘s AI-driven credit risk assessment solutions, merchants and SMBs can receive affordable funding.
They reportedly operate in over nine geographies across the UK, EU and the US.